Every business needs to plan ahead by forecasting the
future. Done well, it is a powerful tool for steering and controlling the
company. However, in too many cases, the process seems never-ending, is plagued
with conflict and manoeuvring, and leads to short tempers & injured
feelings.
It is incumbent on you to
approach it in a way which minimises the workload and the potential for stress.
This article sets out some proven approaches to the process and helps you to
deal with the vagaries of budgetary behaviour and game playing. It is written from the point of view of a
CFO.
Key Points
Key Points
- Budgeting and forecasting is a
business process before it is a financial one
- Plan and organise your process to the
utmost
- Leave time for revisions and debate
- Use technology to the best effect
- Be alive to the behavioural aspects of
budgeting
- Ensure the maximum involvement of
operating managers
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